Preemptive right

Common stockholder's right to anything of value distributed by the company.

Similar financial terms

Rights issue
An new share issue to existing shareholders giving them the right to buy new shares at a predetermined price.

Issuance of "rights" to current shareholders allowing them to purchase additional shares,usually at a discount to market price. Shareholders who do not exercise these rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them. Rights offerings are particularly common to c ...

With rights
Purchase of shares in which the buyer is entitled to the rights to buy shares in the company's rights issue.

Voting rights
The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors.

Transferable put right
An option issued by the firm to its shareholders to sell the firm one share of its common stock at a fixed price (the strike price) within a stated period (the time to maturity). The put right is "transferable" because it can be traded in the capital markets.

Special drawing rights (SDR)
A form of international reserve assets, created by the IMF in 1967, whose value is based on a portfolio of widely used currencies.

Bond whose principal repayment is linked to the price of another security. The bonds are
issued in two tranches: in the first tranche repayment increases with the price of the other security, and in the
second tranche repayment decreases with the price of the other security.